The rate of capital growth in a bank account is described by the differential equation(adsbygoogle = window.adsbygoogle || []).push({});

dM/dt = aM

Where dM/dt is the rate of change of the capital M and a is the annual interest rate.

Show that the general solution for the time dependence of capital M(t) is given by:

M(t) = M0 * e^at

where t is the time in years and M0 is the initial capital.

Really struggle with questions written like this, I know I should be approaching the question by integrating dM/dt = aM, but I dont understand where M0 comes into this atall, any help much appreciated!

**Physics Forums - The Fusion of Science and Community**

# Applications of Differential equations

Know someone interested in this topic? Share a link to this question via email,
Google+,
Twitter, or
Facebook

Have something to add?

- Similar discussions for: Applications of Differential equations

Loading...

**Physics Forums - The Fusion of Science and Community**